USA: Steve Madden Q2 Profit Up 10%, Sales Slip

Leading footwear company Steven Madden Ltd on Tuesday posted a 9.8 per cent rise in second quarter net profit despite a slip in sales amid unseasonal weather and reaffirmed its full year earnings outlook.

The New York-based firm reported net income for the 13 weeks ended June 30 of $5.8 million, or 41 cents per diluted share, versus $5.3m, or 38 cents per share, in the year-ago period as sales fell to $85.7m from $88.1m last year.

Retail revenues were flat at $22.4m although same-store sales slumped almost 10 per cent in the quarter amid bad weather.

It added revenues from the wholesale business, comprising its Steve Madden Womens, Steve Madden Mens, Stevies, lei, and David Aaron, including Steven, brands, were $63.3 versus $65.7m last year.

"However, it is noteworthy that despite these challenges, we were effective in maintaining market share gained in the same period one year ago when a record 47.9 per cent sales growth was achieved.

"While we admittedly remain very cautious regarding the near-term due to the external challenges in the marketplace, we believe that Steven Madden Ltd will be able to positively navigate through the current environment, make significant progress in its evolution into a leading fashion-forward lifestyle branded company, and meet its long-term growth and profitability targets."

The firm reaffirmed its full year earnings outlook of $1.58 to $1.63 per share driven by a low to mid single digit net sales increase.

Footwear retailer Steven Madden has reported a 12.9 per cent third-quarter sales rise after its wholesale and retail units saw good demand, and has announced the forthcoming departure of president Ric...